Over the past years, tech salaries have been growing consistently. Whether you work in the healthcare or manufacturing sector, if you were part of the tech team, you probably got a pay rise. In the digital era, learning tech skills have become a must and the increasing need for tech professionals has made organizations offer outstanding salaries.
Nowadays, the “new normal” has affected the way we work. Most companies are now offering remote positions and looking forward to hiring more remote workers. Although remote work was the best thing that could happen to some employees, it’s affected the growth rate of salaries in the tech sector. Therefore, if you want to how remote work has changed tech salaries in the era of coronavirus, continue reading.
In 2019, tech wages grew in every major market. According to Hired’s 2020 State of Salaries report, the typical salary of US tech employees reached $146,000 per year. At the same time, the global average reached $130,000. The salary growth was led by Austin and Toronto. Tech workers from both cities saw a rise of 10 percent in their wages. The San Francisco Bay Area retains the highest pay in tech. With a 7 percent increase, the average salary reached $155,000 per year.
Whether Covid-19 creates a new normal or current trends continue, there’s no doubt that everyone working in tech saw significant gains in their payments. After all, there was widespread growth in salaries offered to tech professionals.
After the Coronavirus Outbreak
To stop the virus from spreading, most companies needed to close their offices. As a result, the demand for employees with remote working skills increased. Nowadays, remote workers are indispensable for companies because they are the only ones that can help companies to innovate the market and stay in the game. In the digital era, customers are spending more time online and this has encouraged organizations to invest huge amounts of money in new technologies.
During the coronavirus lockdown, for example, companies like Amazon and Walmart began to hire more software engineers, mobile developers, and web developers. Since users’ demands are higher, the need for building a better tech team has also increased.
The adoption of permanent working-from-home policies forced tech professionals to think about moving to increase their net earnings. For example, If you have a New York salary and move to a city like Denver or Austin, your net earnings will be higher because Denver and Austin have lower costs of living. This might become real for some tech workers. But, big tech companies are already laying the groundwork.
Facebook is one of many tech companies that have been considering implementing location-based policies. No matter where you live, your payment is adjusted depending on your location. In other words, moving to a city with lower costs of living won’t necessarily increase your net income.
On the other hand, Hired’s report has also shown that there’s a lot of work to do when it comes to salary equity. Several companies have taken action to achieve transparency in the workplace. However, existing equity, diversity, and inclusion initiatives are ineffective, as proven by the expectation gap. According to Hired, Hispanic and Black tech workers expect lower salaries than their Asian and white counterparts. In fact, a Black tech professional generally expects to receive $9,000 less a year than a white tech professional with the same skills and job title.
Remote work has been embraced by many companies and workers. Nonetheless, the majority of surveyed tech employees would prefer to work remotely part-time. Hired’s report shows that only 35 percent of respondents would like a full-time remote position. 56 percent of tech employees would prefer to be in the office at least two days a week.
Remote work is here to stay and will affect the way tech salaries have been increasing. Nevertheless, the tech industry will continue to grow day after day because new technologies have transformed the way we live and work Transparency around salary data will be vital for empowering tech talent to find a job they love and that compensates them for the actual value of their abilities. Although remote work may affect tech salaries’ growth, learning new tech skills will be essential to overcome future challenges. Consequently, you should consider visiting Bootcamp Rankings’ site to find an online coding Bootcamp and start learning